Respuesta :
Answer:
The excess amount reimbursed by a 70-year-old male in comparison to a 50-year-old male for the term life policy is $15,708.
Explanation:
What is a term life policy?
An agreement initiated by an insurance company with a policyholder where the policyholder agrees to reimburse a certain amount of premium monthly, quarterly, or yearly, and in return, the company promises to indemnify his/her beneficiary party at the demise of the policy owner.
Given values:
Monthly average cost (MAC) for a 70-year-old is $79.79
Monthly average cost (MAC) for a 50-year-old is $14.34
Computation of excess amount paid by 70-year-old for the term life policy:
[tex]\rm Excess \ Amount = \rm (MAC\ at\ 70\ years * 12 - \rm MAC\ at\ 50\ years\ * \ 12) * 20 \ years \ term\\\rm Excess \ Amount = (\$79.79 * 12 - \$14.34 * 12) * 20 \\ \rm Excess \ Amount =(\$957.48 - \$172.08)*20\\\rm Excess \ Amount =\$15,708[/tex]
Hence, the extra amount of $15,708 is paid by a 70-year-old male for the term life policy for 20 years.
Learn more about term life insurance policy here: https://brainly.com/question/23880183
